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Stocks V / VISA
|Subject: Re: Holy Cow!!! got a raise today!!!||Date: 10/26/2012 5:46 PM|
|Author: blesto||Number: 231 of 308|
I rec'd your post this morning but I had to run and now I'm gonna post.
I think DRIPs are great, but they were created during an era when brokers charged outrageous fees and you had to buy in lots of 100 shares.
So - many companies, to promote themselves and their stock provided this service for the small guy and employees. The company's share plan could buy in these 100 share lots easily with the pooled dividends and then split the shares accordingly among the DRIP holders. Those 100 share lots were also why companies would split their shares frequently, to make 100 shares within reach of other investors.
Now here we are with Visa who only IPO'd not so very long ago. An era now with discount brokerages that if you only wanted to buy 1 share, you can.
If I were a betting man I'd bet that Visa will not create any DSP or DRP plans.
Some online brokerages like TD Ameritrade will set up a divi reinvestment plan within your account. I'm not sure of the particulars, but it may be worth some research to see if that would be something you'd like to do.
From what I read in this vast universe of Fool message boards, plenty of people DRIP this way now. One of the plusses is you have more direct control over the actions in an online account like that.
Congrats on the raise!
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